Challenge steps up milk price

Challenge steps up milk price


WAFARMERS welcomes the decision by Western Australian farmer cooperative Challenge Dairy to increase its milk price for the July to December period.

The price increases come at a time that will assist dairy farmers to assess what the next six months will bring.

The four cents per litre increase for supply under the delivery rights units and the six cents per litre increase for 100 per cent DRU suppliers over the spring period is a substantial increase on the previous prices.

While the increase does not push their farm gate milk price above the sustainable threshold it will help to underpin the rest of the industry for the spring and summer milk prices.

This price increase comes soon after the sign off on the joint venture with Sanyuan Foods and this provides an indication of what is still to come.

Imports of dairy produce into China over the first six months of this year have jumped a staggering 39 per cent when compared to the same period last year.

Over this period China imported 180,300 tonnes of dairy products worth $US202 million.

The substantial increases in imports to China have been linked to lower import tariffs and growing domestic demand.

China is a rapidly growing market that WA is well placed to tap into and accessing these markets is essential to the growth of the State’s dairy industry.

The team at Challenge must be congratulated for the timing of the announcement and for their step closer to getting produce into this market.

– Tony Pratico

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